Rising Bank fraud and Money Mule Networks should be a national security threat, warns a UK-based Think Tank
The United Kingdom has seen a surge in financial crimes, with fraud being at its highest point; 40% of all reported crimes include financial fraud. UK-based think tank, Royal United Services Institute (RUSI), in its latest report, termed this rising financial fraud to be categorised as a national security threat.
The report from RUSI found that the efficient and sophisticated techniques used by fraudsters and the weak crime control mechanism in the financial sector have allowed thousands of money mules to operate throughout the Kingdom.
The report noted a 23% increase in the money mules account last year, as 225,000 people were identified as “money mules” for allowing criminals to use their accounts to launder illicit funds.
Vulnerable groups like Students or job seekers are likely to be the major targets for the money mule recruiter, as these people desperately look for ways to quickly make cash. The money originated from fraud, scams, or illegal drug dealing and is passed through the legitimate bank accounts (of money mules). Many people are mostly not aware that their accounts are being used for laundering illegal money, as it is set up as a fake job. Fraudsters use the attractive slogan of “Easy Money” to recruit mules, often those who are in dire need of funds.
Once the funds get into a mule account, they are quickly transferred to another account, adding layers of transactions, making it harder for the authorities to track the origin of funds. The report noted that almost half of the funds sent to the mule account were transferred to other accounts within an hour, while 28% of those left the mule account in just 15 minutes.
“The scale and extent of fraud in the UK is so vast that it may reasonably be seen as a national security threat, undermining the rule of law and threatening the UK’s financial sector.” The report suggested.
The crooks have been successfully laundering their profits from fraud, giving a few hundred pounds to the mules. This is possible due to weak crime prevention procedures and the higher cost of living, which induces the lower and middle-class individuals to sign up for these fake jobs.
The report stressed the need for an effective crime prevention mechanism, which, if not imposed soon, may lead to further escalation of fraud, greater losses to the economy, and weakening of public trust in the financial system.
